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UNIROYAL TECHNOLOGY CORPORATION TO USE PROCEEDS
FROM SALE OF SEGMENT TO PAY DOWN DEBT AND EXPAND TECHNOLOGY
PRESENCE
Sarasota, FL, February 29, 2000 - Howard R. Curd, Chairman
and Chief Executive Officer of Uniroyal Technology Corporation
(NASDAQ/NMS:UTCI) noted today that the Company currently
plans to use the proceeds received from the sale of
its High Performance Plastics segment to pay down debt,
expand at an accelerated pace its capacities for the
production of high brightness light emitting diodes
(HB-LEDs) and explore strategic acquisitions in the
high technology arena. HB-LEDs grew 54% last year and
are forecasted by industry data sources to grow substantially
each year for the foreseeable future.
"After paying down debt and paying associated taxes
from the gain on the sale, we will have cash of approximately
$75 million to invest in our optoelectronics business
and pursue strategic acquisitions," Curd said.
Late last year, the Company announced plans to double
the current production capacity for high brightness
light emitting diodes in green and blue colors. The
additional production capacity is expected to be in
place in July. In addition, the Company is developing
plans to build-out additional capacity for HB-LEDs in
blue and green colors at its Tampa facility. The additional
capacity build-out, known as Phase II, is expected to
be completed within approximately one year. Additional
reactors for blue and green HB-LEDs will be staged in
thereafter to futher increase the production capacity
for the blue and green colors. The cost for completion
of Phase II is estimated at $25 million. "We are increasing
the capacity for HB-LEDs as fast as possible. The market
is strong and our objective is to be a major player
in this industry," Curd added. The Company recently
began shipping HB-LEDs to a major customer.
The Company is also actively pursuing strategic acquisitions
to complement its existing optoelectronics segment.
"We want to grow quickly but in a prudent manner. Strategic
acquisitions will most certainly be a vehicle of growth
for our Company," Curd said.
Uniroyal Technology has three business segments: Optoelectronics,
Coated Fabrics and Specialty Adhesives. Some of the
Company's well-known brand names and products include
epitaxial wafers, package-ready dies and lamps for LEDs
in its Optoelectronics segment, NAUGAHYDE® and NAUGASOFT™
in coated fabrics, and SILAPRENE®, HYDRA FAST-EN® and
GUNTHER ULTRA/BOND® in adhesives.
The Company's stock and warrants trade on the NASDAQ/NMS
under the symbols UTCI and UTCIW, respectively.
Statements made herein that are forward-looking
in nature within the meaning of the Private Securities
Litigation Reform Act of 1995 are subject to risks
and uncertainties that could cause actual results
to differ materially. Such risks and uncertainties
include, but are not limited to, those related to
business conditions and the financial strength of
the various markets served by the Company, the level
of spending for such products and the ability of the
Company to successfully manufacture and market its
products.
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